Patten and Company

Net Operating Loss

A net operating loss (NOL) occurs when a business’s operating expenses and other deductions for the year exceed its revenues. On the bright side, you can claim an NOL deduction if your business’s expenses exceed its income (though certain modifications apply). Generally, once you incur a qualifying NOL, you can either carry it back as far as allowable (typically two years) and then carry forward any remaining amount, or you can elect to carry forward the entire loss. Choosing the best approach can be tricky, so please give us a call for help.

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Does Your Buy-Sell Agreement Need Updating?

The earned income credit (EIC) has been around for years. But it’s never been worth as much as it will be for 2021 under the new American Rescue Plan Act (ARPA). Some favorable changes are only for the 2021 tax year, while others are permanent.

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